Malaysia has dropped criminal charges against units of Goldman Sachs Group over the bank’s role in the alleged theft of billions of dollars from a government investment fund, a key step under the terms of a recent $3.9bn settlement.

Goldman was the main banker for 1Malaysia Development, or 1MDB, which Malaysia created in 2009 to help spur economic growth. The bank raised billions of dollars for the Malaysian fund, much of which was allegedly stolen by people who worked for the fund, government officials and two senior Goldman bankers.